Home Mortgage

Refinance your home loan with low interest rate

How to Get the Best Mortgage Rates?

First, make sure you are comparing current mortgage rates for the same type of mortgage. Mortgage rates and closing costs can change significantly from one day to another, so if you are comparing offers from multiple lenders it must be done on the same day. For example, if you are shopping mortgage rates and have a quote for a 30 year fixed at 5.75%, only compare it to other 30 year fixed quotes at 5.75%.

Next, compare the total of all points and lender fees for each mortgage (from section 800 to 813 on the Good Faith Estimate), that is the price of the mortgage. The lender with the lowest cost has the best mortgage rates.

If you are refinancing, you will also need to review the cost of title insurance, closing/attorney, and appraisal. Some large national companies have negotiated excellent rates for these services on your behalf. The company with the lowest combination of points, fees and third party costs for the same rate and product has the best mortgage rates.

Home Mortgage Loan Types

Things to remember

Good Faith Estimates are just estimates. Many brokers and lenders will give you a low ball estimate, and then after you have paid for your appraisal, they will inform you that the mortgage rate or closing cost have gone up. Look for lenders that guarantee their closing costs up front.

There is nothing wrong with No Closing Cost Loans. Just be aware that you will be looking at higher mortgage rates in exchange or if you are refinancing, the closing costs could be included in your principal.

Paying higher points and fees will result in lower mortgage rates. For example, at 7% you may have zero points and fees, while at 6% you may have points and fees of $3000. To get the best mortgage rates, you must estimate how long you will have the mortgage. Also, make sure you are comparing current mortgage rates when doing your comparison.

mortgage rates for any home mortgage loan can differ widely.

Fixed Rate Home Mortgage Loans

With a fixed rate home loan you don’t have to worry about your monthly payment changing…ever. Your mortgage rate and payment are fixed for the life of your home loan. Fixed rate mortgage loans range from 10 to 40 years.

FHA Home Mortgage Loans

FHA home loans are insured by the Federal Housing Administration. Although FHA mortgage rates may typically be higher than conventional mortgage loans, FHA home loans offer many advantages including low down payment requirements, flexible credit guidelines as well as the ability to lend in declining markets.

VA Home Mortgage Loans

VA home loans are guaranteed by the US Department of Veteran Affairs. These mortgage loans are offered specifically to eligible veterans for home purchases, rate & term home loan refinances or cash-out mortgage loan refinances. VA loans offer many advantages to qualified veterans.

Debt Consolidation Home Mortgage Loans

If you have debt outside of your home loan, you are likely paying a much higher interest rate than you should be. Credit card interest rates can be as high as 25%. Refinancing your home mortgage loan to pay off and consolidate debt under one low mortgage rate is a smart maneuver. Refinancing your home loan could save you a great deal of cash every month.

Cash Out Home Mortgage Loans

You can obtain a refinance home mortgage loan to get cash out for a variety of purposes, including education expenses, vacations, other investments, home improvements and more.

Adjustable Rate Home Mortgage Loans

With an adjustable rate mortgage (ARM), you can lower your monthly mortgage loan payment because mortgage rates for ARMs are usually lower than traditional fixed rate programs. If you plan on selling or refinancing your home in less than 10 years, then an adjustable rate mortgage loan may be right for you.

Interest Only Home Mortgage Loans

With interest only home loans, you only pay interest during the initial interest only period. This type of home mortgage loan allows you to lower your initial mortgage rate, lower your initial monthly payment, qualify for a larger loan amount and free up cash for other uses.

USDA Home Mortgage Loans

USDA home loans are offered in rural areas as determined by the United States Department of Agriculture (USDA). The USDA’s mission is to help lower income households obtain home loans at reasonable mortgage loan rates. USDA home loans offer many advantages to qualified borrowers.

Divorce Buyout Home Mortgage Loans

Many home mortgage loans are tailored for people with special circumstances. The Divorce Buyout Mortgage allows one spouse to keep the house, possibly get cash out if needed, and remove the other spouse’s name from the current home loan, thus eliminating any undue financial liability for the home loan

Home improvement loans are home loans used to finance improvements on your house or property. These loans are used to maintain or increase the value of your home. This can include repairs, a new kitchen, a new bathroom, an extension or general property improvements. Landscape improvements and swimming pools can also in many cases be considered home improvement. Generally, all actions that can be considered to increase the value of the property in such a way that it increases the expected sales value of the home or the property are to be considered home improvements.

A home equity loan allows you as a homeowner to get a loan by using the equity in your home as collateral. The equity consists of whatever funds you have invested in your property in order to own it or improves it.

Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if the creditor wants the money back that you have borrowed.

To Get the Best Mortgage Rates make sure you are comparing current mortgage rates for the same type of mortgage and Mortgage rates and closing costs can change significantly from one day to another